July 11th Resrarch Report on SURG from Goldman Sma
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Posted On: 07/11/2019 12:07:00 PM
Re: russkitrader2018 #240
July 11th Resrarch Report on SURG from Goldman Small Cap Research which details the strong company success story coming together here: https://www.goldmanresearch.com/201907111246/...ahead.html
Some Highlights from the report:
Emerging fintech and retail supply chain solutions provider Surge Holdings is poised to generate outsized revenue and market share in large, underserved markets. The Company’s approach improves and enhances operations and profits for retailers, provides previously inaccessible broad-scale distribution for manufacturers, and improves the quality of life directly and indirectly for its low income, underbanked consumers.
SurgePays™ Retail Blockchain Network is a first-in-kind fintech network connecting independent retailers, manufacturers and consumers. As the first company to truly tie these three specific components of the food chain together, we view Surge as a unique combination of financial transactions clearinghouse and service/product marketplace.
Surge is on its way to installing its flagship blockchain offering in 40,000 stores affiliated with the highly regarded trade association, AATAC. We believe at least $1500/mo. in revenue per store can be generated, once fully deployed. As a technology company Surge is well-positioned to scale easily and rapidly.
Our forecasts call for revenue to leap from $25M in 2019 to $104M in 2020 and $204M in 2021, with over 21% margins. Fees are generated via sales of products in the retail and manufacturer chain, and the soon-to-be-launched Visa PrePaid Card.
Our $3.25 price target is based on 4.8x 2021P revenue and 22x 2021P EPS forecasts. It should be noted that these metrics are below that of a key publicly traded comparable as well as other SaaS companies.
Some Highlights from the report:
Emerging fintech and retail supply chain solutions provider Surge Holdings is poised to generate outsized revenue and market share in large, underserved markets. The Company’s approach improves and enhances operations and profits for retailers, provides previously inaccessible broad-scale distribution for manufacturers, and improves the quality of life directly and indirectly for its low income, underbanked consumers.
SurgePays™ Retail Blockchain Network is a first-in-kind fintech network connecting independent retailers, manufacturers and consumers. As the first company to truly tie these three specific components of the food chain together, we view Surge as a unique combination of financial transactions clearinghouse and service/product marketplace.
Surge is on its way to installing its flagship blockchain offering in 40,000 stores affiliated with the highly regarded trade association, AATAC. We believe at least $1500/mo. in revenue per store can be generated, once fully deployed. As a technology company Surge is well-positioned to scale easily and rapidly.
Our forecasts call for revenue to leap from $25M in 2019 to $104M in 2020 and $204M in 2021, with over 21% margins. Fees are generated via sales of products in the retail and manufacturer chain, and the soon-to-be-launched Visa PrePaid Card.
Our $3.25 price target is based on 4.8x 2021P revenue and 22x 2021P EPS forecasts. It should be noted that these metrics are below that of a key publicly traded comparable as well as other SaaS companies.
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